On February 27, 2006, Assemblymember Magnarelli, chair of the Task Force on University-Industry
Cooperation, held a hearing in Albany, New York, on The Role of New York State in Commercializing
Research & Development Innovations. The hearing was co-sponsored by Assemblymembers
Joseph D. Morelle, chair of the Subcommittee on Manufacturing, and Adele Cohen, chairwoman of the
Commission on Science and Technology. The purpose of the hearing was to identify and articulate a
strategy for assisting the commercialization of innovations resulting from State-sponsored research and
development (R&D) conducted at research institutions throughout New York.

In recent years, New York State has invested well over one billion dollars in university-based R&D
at institutions throughout New York. Testimony was received from over 40 witnesses and there were
many interesting and insightful observations and recommendations focusing on funding, structure,
space, business assistance, entrepreneurial programs, and workforce development.

Concern was expressed by many witnesses that the State does not invest enough in the early,
start-up stage, where these funds are most deficient, and that the smallest businesses, those with
the least amount of funding available, are least able to take advantage of federal investments which
require a dollar-for-dollar match. Overall, witnesses urged the State to provide seed or gap funding for
early stage development, tax credits for investors who take the risk of investing in this early, unproven
stage, and to utilize the State Retirement Fund in a more direct way for this crucial period of business
development.

Another concern was the absence of a coherent structure for commercialization assistance – that is,
no single process or entry point for services, and no consistent, uniform set of policies and directives
for the lab-to-market continuum. Recommendations included establishing an Office of Technology
Commercialization, and a one-stop approach.

The crucial need for space was also addressed, as was the importance of business and entrepreneurial
assistance. Several witnesses recommended using the regional Small Business Development Centers
and university schools of management and business to provide services, and strengthening the
entrepreneurial climate in the State through entrepreneurial boot camps, business plan contests,
coaching & mentoring.

Finally, the crucial area of workforce development was discussed by most, if not all, of the witnesses.
Assemblymembers heard, for example, that doctorates in science & engineering have declined
since 1988, and that the U.S. produces approximately 70,000 engineers per year compared to India
and China, which produce 10 times that number. In addition, less than 6% of 24 year olds in this
country earned a B.S. in science, ranking this country 25th in the world. In addition to enhancing
science, math and engineering education, it was strongly recommended that education include
relevant commercialization-related programs – especially in regulatory affairs, quality assurance
and control, and good laboratory practices. Further suggestions included creating forgivable student
loans for those who agree to stay and work in the State for a prescribed period and funding targeted
workforce training in cooperation with regional initiatives, including Centers of Excellence, and growth
businesses; and investing in education and retraining with particular emphasis on emerging science
and engineering fields.

Reinforced by the Hearing testimony, Assemblymember Magnarelli and his colleagues remain committed
to supporting existing and future legislative and programmatic efforts regarding commercialization in New
York State. For more information on the Hearing, contact the Task Force at (518) 455-4884.